Banking and Finance Law Daily Wrap Up, CAPITAL AND BASEL ACCORDS—GAO recommends clarifying Basel Committee records retention policy, (Jan 30, 2026)

By A. Bryan Gerepka

Government watchdog finds current OCC policy lacks clarity, which may lead to inconsistent retention of important documents and risks to accountability and compliance.

The Office of the Comptroller of the Currency has agreed to revise its records retention policy, following recommendations from the Government Accountability Office (GAO) that the agency clarify the treatment of Basel Committee documents. Specifically, the OCC should clarify which documents created for or received from the Basel Committee should be treated as records, the GAO report stated. Such clarification could help ensure OCC staff retain documents needed to support the implementation of Basel standards, consult with leadership during standards negotiations, demonstrate accountability, and ensure compliance with the Federal Records Act, the GAO added.

The OCC anticipates providing the supplemental guidance to staff no later than April 2026.

The recommendations follow a GAO review of OCC Basel committee record retention policies, compared with those of fellow committee members—the Federal Reserve Board (Fed) and the Federal Deposit Insurance Corporation (FDIC). The report identified the following key risks in OCC policy:

Confidentiality Breaches. The Basel Committee expects members to treat discussions, internal papers, and analyses as confidential, the report stated. Breaches of these expectations could lead to informal actions, such as restricting access to information or expelling a member entity. U.S. agency officials are required to protect confidential supervisory and sensitive information, including information from the Basel Committee. Breaches could result in disciplinary actions, adverse procedures, or civil/criminal penalties.

Inadequate Records Retention Policy at OCC. Failure to provide clear instructions on whether Basel Committee and related documents should be treated as records under the Federal Records Act when first created or received creates risks. The risks include inconsistent retention of documents needed for rulemaking purposes, insufficient documentation to inform leadership during standards negotiations, and limited ability to demonstrate accountability to external stakeholders.

Potential Noncompliance with Federal Records Act. The Federal Records Act requires covered agencies to preserve records documenting their functions, decisions, and policies. However, the report noted that OCC’s current policy does not ensure compliance with these requirements, as it does not mandate the retention of Basel Committee documents unless they are used for rulemaking.

Limited FOIA Requests for Basel Committee Records. While banking regulators received few FOIA requests for Basel Committee-related records between 2019 and 2024, the lack of clear records retention policies could hinder OCC’s ability to respond to such requests effectively in the future.

OCC Policies Differ from Regulatory Peers. Both the Federal Reserve Board and the Federal Deposit Insurance Corporation have clear policies and guidance for retaining Basel Committee-related documents, ensuring compliance with the Federal Records Act and proper documentation of their work, the report stated.

The Federal Records Act governs the Fed’s records retention policy. The policy explicitly covers documents created or received during participation in international organizations, including the Basel Committee. The Fed updated its guidance in January 2024 to ensure staff document all decisions, actions, and deliberations (e.g., meeting notes, briefings, memorandums) and prevent inappropriate destruction of records. Meanwhile, the Federal Reserve Bank of New York (FRBNY), which is not subject to the Federal Records Act, follows the Fed’s policy and guidance for Basel Committee work.

Similarly, the FDIC is not subject to the Federal Records Act but has a records retention program informed by it, the report stated. The FDIC’s policy covers all records maintained by the agency, including Basel Committee-related documents. Moreover, the FDIC has a procedure requiring staff to prepare meeting notes, archive group meeting documents, and share them with subject matter experts and management for feedback, the GAO added.

Deficiencies at the OCC: The OCC retention policy lacks clarity, which may lead to inconsistent retention of important documents and risks to accountability and compliance, the GAO observed. The OCC, which must comply with the Federal Records Act, does not provide clear instructions on whether Basel Committee and related documents should be treated as records when first created or received. According to the GAO report, the OCC’s policy only considers documents as records if they are used as background or working files for rulemaking activities related to Basel standards. Further, the OCC has not issued supplemental guidance to clarify the treatment of Basel Committee documents, creating risks of inconsistent retention and noncompliance with the Federal Records Act.

Basel Committee Background. The Fed, FDIC, and OCC are members of the Basel Committee. The committee comprises 45 members from 28 jurisdictions, consisting of central banks and authorities with formal responsibility for the supervision of banks. Their responsibilities include issuing regulations to establish capital, liquidity, and other requirements for the institutions they supervise, to promote the health and stability of the banking system. The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters.

RegulatoryActivity: CapitalBaselAccords OversightInvestigations